Historical Dividend Analysis of Target Company

Historical Dividend Analysis of Target Company

QUESTION

Prepare and submit a historical dividend analysis of your target company in power-point or similar software. Your target company should be a US listed public company, mid-cap or small-cap in size, that pays a dividend. For the definition of Midcap, select a company that is less than $14B in market cap. In the video, I suggest $12 Billion but giving you a little flexibility to find a company you are interested in by going a little bigger. Remember, it must have paid a dividend in the past! This is an individual exercise.
Assignment Overview
Objective: Analyze how the firm has returned cash to shareholders
Historical Dividend Analysis

Identify how much the firm has paid in dividends over the past 5 years?
How much stock has the firm repurchased over the past 5 years?
Has the firm paid a special dividend?
What is the firms dividend yield? How has it changed over the past 5 years?
What is the firms payout ratio? Has it been consistent?
Compare the firms dividend yield and payout ratio to the industry (or its top 3-5 competitors).
Summarize and provide any other comments that you feel are relevant to the firms’ dividend policy.

Subject	Business	Pages	4	Style	APA

Analysis of Wabtec House Incorporation

Institution

Overview of the Company

Web Corporation is a publicly listed company which engages in distribution of stamping foils and heat transfer labels
Wabtec Corporation employs the local graphic design to and engravings
The company also supports various products such as The company provides warranty to its clients, which has enabled it to gain a great trust from them.
Though its headquarters is based in the United States, it has branches across the globe.
Dividends are amounts distributed to the shareholders out of the realized profit, in return for the amount they have invested in the company.
The distributed dividends have a great influence on the value of the company as investors tend to prefer companies which regularly distribute dividends.
The dividends are distributed in share basis. This means that shareholders with higher shares would earn more dividends, as compared to those with few shares.
Dividends are distributed after deducting all expenses, and tax paid.
Special dividends are paid not on ordinary dates, but on special dates which are determined by the board of management.
Payment of special dividends can either be done on request by the shareholders, or upon a certain special audit which us authorized by the shareholders.
Wabtec has never distributed any special dividends in the past five
Instead, the company has paid normal dividends which can be summarized as follows;

Stock repurchased are the number of shares which have been redeemed from members.
The aim of shares redeeming or repurchasing is to reduce the gearing level.
Only shares which are listed as redeemable can be repurchased after a certain duration.
Share repurchase has the effect of reducing the number of outstanding shares, while increasing the dividends realizable by every shareholder.
Just like shares issue, shares repurchase must also be approved by majority of the shareholders in an annual general meeting.
The table below summarizes the value of shares number stock/ shares which have been repurchased.
The negative value of the shares redeemed is an indication that the company has never redeemed any shares in the past five years.
Instead more shares have been authorized and issued.
Consequently, the ownership of the company has been consistently diluted in the past five years.
Being a publicly listed company, Wabtec is required to retain a maximum of 60% of its net income, which is a restriction on its dividends distribution.
With this cash management, the company has been signaling the market of its constraints to pay cash dividends.
The shareholders should therefore expect very minimal or zero cash dividends in future